The SEC’s war on cryptocurrency rumbles on with little signs of stopping. In a case against Ripple and its token XRP to determine whether it should be deemed a security, the consequences for the wider cryptocurrency industry could be catastrophic. In this article, we’ll delve into the legal dispute between the SEC and Ripple, and assess the ramifications for cryptocurrencies like Dogetti (DETI) or Monero (XMR).
In what has been a turgid few months for cryptocurrency, on the back of the FTX crash and multiple crypto-orientated banks folding, the stakes could not be higher for the crypto industry in the legal battle between the SEC and Ripple. But why is this happening, and what could it mean?
What Is Happening Between The SEC And Ripple?
The SEC battle against Ripple is to determine whether Ripple’s token XRP should be deemed a ‘security’ or not. So let’s establish what it means when the SEC refers to something as a security.
If XRP was deemed a ‘security’ it would mean it is a financial instrument containing a monetary value that can be sold or traded within financial markets. The most common type of ‘securities’ tend to be stocks, bonds, options, and more. Within the U.S. all deemed ‘securities’ have to be registered with the SEC and risk severe penalties for violating its regulations.
This is determined through the Howey Test which characterises an investment contract as an ‘investment of money, in a common enterprise, with a reasonable expectation of profits, to be derived from the efforts of others.’ Through this, the SEC argues that XRP should be classified as a ‘security’, in what could be seen as part of its wider belief that most of the cryptos circulating in the market should also be defined as a ‘security’.
How Is The Case Unfolding For XRP?
Unsurprisingly, Ripple has contested the SEC’s allegations, maintaining that selling XRP was not an investment contract as nothing was signed during transactions and XRP, therefore, does not qualify the parameters of the Howey Test.
Many are confident that Ripple will win this case but anxiety remains rife in the industry.
What Could The SEC Vs. Ripple Case Mean For Coins Like Dogetti?
A victory for Ripple could spar a major boom in crypto buying as investors would feel reassured by the legal victory. This could be a boon for new cryptos like Dogetti which are poised to enter the market and could do so during a time of high investor confidence.
Why would this be important?
Dogetti is close to concluding a presale which has seen millions of dollars raised and expectations and excitement surging. As a community-owned coin, one which draws from mafia literature to create a feeling of family and togetherness, Dogetti could be one of the prime candidates for being the top crypto in 2023. Its ecosystem has excited many investors with how it incentivises the purchase of its DETI tokens by rewarding members with a stake in the platform’s earnings and future development.
Conversely, we could see catastrophic ripple effects for cryptos like Dogetti or Monero if the SEC proves triumphant in its case. Even if these coins are not necessarily deemed to be ‘securities’, the inevitable loss of faith and conviction in the wider cryptocurrency market would hurt the pockets of coins like Dogetti or Monero.
For more information about Dogetti (DETI):
Presale: https://dogetti.io/how-to-buy
Website: https://dogetti.io/
Telegram: https://t.me/Dogetti
Twitter: https://twitter.com/_Dogetti_